Whale Withdraws 600B SHIB From Binance, Has the Exchange Lost its Client’s Trust?

Bits Logics Team . 04th Dec 2023

Binance continues to be overshadowed by gloomy conditions as Lookonchain revealed that a whale withdrew 600B $SHIB($5.7M) from the exchange. Parallel to this withdrawal another wallet of this whale also withdrew 250B $SHIB($2.3M) from Binance 9 days ago, reported Lookonchain, a market intelligence platform. 

This is another event that added to the listicle of unfortunate events that damaged Binance’s reputation after the exchange was charged by the United States Justice Department relating to a raft of violations of U.S. regulations and sanctions programs. As a result, Binance had to pay a penalty of $4.3B due to early gaps in compliance. This is also considered the largest settlement related to crypto in the history of the U.S. At this juncture, some in the crypto world ponder whether Binance was treated fairly.

Richard Teng who was raised to the post of Chief Executive Officer, following Changpeng Zhao’s abdication as part of the settlement, stated that Binance was given the short end of the stick. He revealed his disappointment while reflecting on how “Wall Street Banks” was not treated with the same intensity as Binance despite failing miserably. 

He stated that Binance is arguably the most regulated exchange given the fact that it is operated in 18 jurisdictions. “Fines in terms of the financial sector are not uncommon. If you do a Google search of the list of fines paid by financial institutions, that list is close to $90 billion in fines,”  stated Teng who could have been seeking for justification of the adjudication. 

Teng further stated, “In those very early days while we were building up the company, there were gaps in terms of compliance. That resulted in all these breaches and mistakes, but these are historical issues.”

Furthermore, Teng prioritized building the customer’s broken trust among the stakeholder objectives that the company hopes to achieve. He stated “reassuring users that they can remain confident in the financial strength, security and safety of the company”, as the first focus. But the question is, how long will Binane take to rebuild its customers’ broken trust?